JSW Steel Limited Investor Presentation May 2015

Transcription

1 JSW Steel Limited Investor Presentation May 2015

2 Agenda Overview Value Proposition Performance Overview Business Environment 2

3 JSW Group overview USD 11 billion group with presence across the core sectors JSW Steel*: India s leading integrated steel producer. (Steel Capacity: 14.3MTPA ) JSW Cement: Slag cement plant of 5.3 MTPA capacity JSW Energy*: Engaged across the value chain of power business(operational plant 3,140 MW) JSW Aluminium: A foray to set up alumina refinery and develop and operate bauxite mines JSW Infrastructure: Engaged in development and operations of ports. (Goa, Jaigarh, and Dharamtar Port) JSoft Solutions: An IT & ITES arm of JSW group Group market cap ($6,624 mn**) JSW Energy 3,123 JSW Steel 3,501 JSW Group FY Gross Turnover: 10,782 EBITDA: 2,165 Profit after Tax: 520 Cash Profit: 1,221 Cash Profit= PAT + Depreciation All figures are in USD millions USD/ ` = (RBI reference rate as on Mar 31, 2015) As on Mar 31, 2015 * Listed company ** USD/ ` = (RBI reference rate as on Mar 31, 2015) 3

4 JSW Steel India s leading steel manufacturer Installed capacity 14.3 MTPA, at six strategic locations in South and West India Leading steel manufacturer in India Integrated manufacturing process Integrated steel manufacturing facilities from raw material processing plants to valueadded product capacities Pan India marketing and distribution network, export presence in ~100 countries across the 5 continents Strong distribution network and export presence Technological competence Combination of state-ofthe-art steel making technologies: Corex, DRI, Blast Furnace Extensive portfolio of products HR, CR, galvanized/galvalume, prepainted, TMT bars, wire rods, special steel bars, tinplates, rounds and blooms Diversified product portfolio Global presence International presence in mining assets (Chile, US and Mozambique) and value-added facilities (Plate and Pipe mill in US) 4

5 Transformational journey to market leadership FY 2002 FY 2010 FY 2015 Capacity (MTPA) Production (MTPA) CAGR FY 02 15: 18% FY 2016 expected capacity of 18MTPA CAGR FY 02 15: 19% Revenue (USD mn) EBITDA (USD mn) EBITDA/ton (1) (USD/ton) Market Cap (USD mn) 277 3,114 8, , ,693 3,501 CAGR FY 02 15: 30% CAGR FY 02 15: 31% CAGR FY 02 15: 10% Significant value creation with 42x increase in market value (2) Technology Corex Corex, BF Corex, BF, DRI Adopting industry leading technologies Product Mix Flats Flats, long, special steel and value added Flat, long, special steel & high valueadded auto grade Continuously expanding product canvas with focus on high-end value-added products Unrelenting progress through the economic cycles (1) Calculated as consolidated EBITDA / Saleable steel, (2) From 31st March 2002 to 31st March 2015, (3) USD/ ` = (RBI reference rate as on Mar 31, 2015) 5

6 Combination of Organic and Inorganic growth Key Projects in progress/pipeline: Dolvi Works capacity expansion to 5MTPA Vijayanagar Works capacity expansion to 12MTPA (3) Salem Works capacity expansion to 1.2MTPA 0.2MTPA Tin plate mill at Tarapur Compalex MTPA 2004 Acquired SISCOL (1) MTPA Color Coating Line Acquired EURO IKON MTPA CRM of 1.0 MTPA MTPA 2011 Acquisition of 49.3% stake in Ispat MTPA Iron Ore mines acquired in Chile Acquisition of Plate and Pipe Mill in US Coal mining concessions in Mozambique MTPA post Ispat merger FY2016/17 18 MTPA 2015 New CRM2 Phase 2 0.2MTPA Electrical Steel Mill HSM II Capacity Expansion to 5 MTPA JSW-JFE Strategic Partnership 3.5 MTPA of HSM II Coal mining concessions in US Continuously evaluating opportunities to deliver value enhancing growth 2014 New CRM2 Phase I 4 MTPA Pellet Plant (2) 1 MTPA Coke Oven Plant (2) Acquired 50% stake in Vallabh Tinplate Acquired Welspun Maxsteel (1) Southern Iron and Steel Company, (2) Amba River Coke Limited (3) Subject to regulatory approval 6

7 JSW JFE strategic partnership One of the largest FDI in the Indian Metals and Mining space Equity infusion by JFE of `5,410 Crores (~$1.2 bn) for 14.99% equity stake Deleveraged Balance Sheet to support next phase of growth Access to cutting edge technologies and fast growing automotive steel market Operational excellence to result in cost reduction Value creation for both the partners JSW Steel: Focused expansion plans in India Optimized capital structure through deleveraging Access to cutting edge technologies JFE: Presence in growing Indian market Future growth through equity participation Strategic production base in India for existing automobile customers Automotive technology agreements Benefits to JSW Steel: Access to fast growing auto steel market Short learning curve Application engineering New product development Benchmarking and personnel training General technical assistance agreements for sustainable business operations Operational excellence and cost reduction by: Improvement in quality, productivity, yield, and energy efficiency Sharing best maintenance, environment management, and safety practices Benchmarking, training and talent sharing Standardization of processes 7

8 Balanced corporate strategy Selective Growth Maintain market share of 13 14% through selective organic and inorganic growth Undertake brownfield expansions at low specific investment cost per ton Consider inorganic opportunities that are value accretive Diversification of Product Profile and Customer Base Increase proportion of high margin value-added products Diversify customer base, both within India and abroad Continue to focus on rural markets in India Focus on Resource Optimization Committed to sustainable and eco-friendly technologies to drive growth Focus on cost reduction and energy efficiency Strengthening Backward and Forward Integration Continue to evaluate raw material assets in India and abroad to secure key raw material supplies and to reduce cost of production by targeting strategic tie-ups and investments Prudent Balance Sheet Management Continuously seeks to improve financial profile Manage capacity expansion and debt profile to capture market opportunities without excessive risk 8

9 Strong and balanced Board comprising experts of eminence & integrity Chairperson Emeritus Executive Directors Independent Directors Nominee Directors Savitri Devi Jindal Seshagiri Rao M.V.S Joint Managing Director & Group CFO Kannan Vijayaraghavan, FCA and Certified Management Consultant Naveen Raj Singh Nominee Director of KSIIDC Promoter Director Sajjan Jindal Chairman & Managing Director Dr. Vinod Nowal Dy. Managing Director Jayant Acharya Director (Commercial & Marketing) Dr. Punita Kumar Sinha Chief Investment Officer at Asia Tigers Dr. Saibal Kanti Gupta Retired Professor at IIT, Bombay Kyoichi Kameyama Nominee Director of JFE Steel Corporation Sudipto Sarkar Senior Advocate, Calcutta High Court Uday Madhav Chitale Senior Partner at M/s. M.P. Chitale & Co., Chartered Accountants Dr. Vijay Kelkar Ex Finance Secretary, Ex Secretary of MoP&G, Ex Chairman Finance Commission Board fundamentally committed to sustainable business 9

10 Sound Corporate Governance Audit Committee Nomination and Remuneration Committee Stakeholders Relationship Committee Project Review Committee Risk Management Committee Corporate Social Responsibility (CSR) Committee Business Responsibility / Sustainability Reporting Committee Ensures regular review of audit plans, significant audit findings, adequacy of internal audit system, compliance with regulations by the Company and its subsidiaries Comprises of four Non-Executive Directors Identifies qualified persons and recommends to the Board the appointment, removal and evaluation of Directors Responsible for drafting policy on specific remuneration packages for Executive Directors and approving the payment of remuneration to managerial personnel Responsible for the functioning of the investor grievances redressal system Comprises of four Non-Executive Directors Closely monitors the progress of projects; ensuring timely completion within the budgeted outlay Continuously reviews new strategic initiatives Periodically reviews risk assessment and minimization procedures Has formed a sub-committee Capex Risk Evaluation Committee to evaluate the risks associated with capex proposals including mergers and acquisitions Formulates and recommends to the Board a CSR Policy including list of projects and programs Strong commitment towards society, the total spending on CSR activities was ~2.3% of net profit in FY14 Responsible for the adoption of National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business (NVGs) Policies created for or linked to the nine key principles of the NVGs All key committees in place, having adequate independent director representation 10

11 Agenda Overview Value Proposition Performance Overview Business Environment 11

12 A platform of strength and agility 1 Strong fundamentals to boost India steel demand 2 Multi-location manufacturing facilities in India 3 Strategic overseas presence 4 Diversified product profile 5 Domestic market leader with strong export presence 6 Strong sales and marketing platform 7 Focus on operational efficiency 8 Strategic expansion aided by strong project execution 9 Proven ability to acquire and turnaround assets 10 Robust financial profile 12

13 Per capita Steel Consumption in 2013 (Kg.) 1 Strong fundamentals to boost India steel demand Decisive mandate in India general elections Strong investor confidence and raised expectations of fastpaced decision-making and economic reforms Upturn in overall GDP growth (1) (%) 5.1% 6.9% 7.4% 7.5% Potential for substantial growth in steel consumption (2)(6) o World Per Capita Consumption is ~225 Kgs. o India Per Capita Consumption is ~58 Kgs. 1,400 1,200 1,000 South Korea 800 China Taiwan FY13 FY14 FY15AE FY16E Infrastructure sector is a key focus area for the new government Infrastructure investment expected to reach ~$1 trillion during (4) New government is focused to give impetus to infrastructure sector Automobile sector expected to turn around India projected to become 3rd largest automotive market in the world by 2016 (5) Faster economic growth and government's policies is likely to drive volumes and revive the automobile sector (200) India Russia Mexico Brazil Italy Japan France Germany Canada USA 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 GDP per capita in 2013 ($) India steel consumption to rise at a faster rate o India s steel consumption was 74MT in 2013 and is expected to rise to ~76MT in 2014 and ~81MT in 2015 (3) With the growth in economy, JSW Steel is well positioned to be part of the India growth story (1) Reserve Bank of India, (2) World Steel Association, World Bank, IMF, (3) World Steel Association, (4) 12 th Five- Year Plan (India), (5) IHS Automotive, (6) Bubble size represents total steel demand of respective country 13

14 2 Multi-location manufacturing facilities in India Dolvi: 3.3 MTPA 2 MTPA Blast Furnace 1.6 MTPA DRI 3.6 MTPA Twin Shell ConArc 55 MW Power Plant Vasind & Tarapur (JSCPL*) 0.32 MTPA HR Plates 1.2 MTPA GP/GC 0.5MTPA Colour Coating Line 30 MW Power Plant Kalmeshwar (JSCPL*) 0.61 MTPA GP/GC 0.19 MTPA Colour Coating Line Vijayanagar: 10MTPA 1.65 MTPA Corex 8.4 MTPA Blast Furnaces 855 MW Power Plant Salem: 1 MTPA 1 MTPA Blast Furnaces 0.5 MTPA Blooming Mill 60 MW Power Plant Leveraging locational advantage to increase market share strategically in the Southern and Western regions of India *JSW Steel Coated Products Limited 14

15 3 Strategic overseas presence US coal mines JSW Steel ownership: 100% Acquisition cost: $70mn 2 of 7 mines are operational Alloy Dock Load Out Facility US plate and pipe mill JSW Steel ownership: 90% Acquisition cost: $810mn Capacity: 1.2 Net MTPA Plates and 0.55 Net MTPA Pipes Acquired in 2007 Opportunity for diversification in terms of products, markets and geographies Chile iron ore mines JSW Steel ownership: 70% Acquisition cost: $252mn Started operations in FY11 Maritime concession to develop cape size port in North Caldera Mozambique coal mines JSW Steel ownership: 100% 5 mining licenses awarded Early stage development in progress Strategic overseas presence for backward integration and value-added facilities 15

16 4 Diversified Product Profile Wide Offering of Flat and Long Products Slabs Color Coated HRC Billets HR Plates Blooms GC TMT CRC Wire Rods Continuously Increasing Value Added Products Diversified portfolio to address growing demand for value-added steel Commissioned new facilities to further enrich product mix Leveraging JFE Steel s well-established manufacturing technology for high value-added products for autograde steel Developing New Products, Capturing Niche Markets Automotive Grade Steel Color Coated Products Electrical Steel Enhanced focus on cold rolled, galvanised and galvanneal products for body panels of automobiles Manufactured at a new CRM2 complex Largest color coated facility to address construction, warehousing and roofing requirements State-of-the-art color coating line for appliance grade products used in consumer durables Establishing Cold Rolled Non-grain Oriented (CRNO) steel plant to address domestic demand by substituting imports of high grade electrical steel Continuously enriching product mix 16

17 5 Domestic market leader with strong export presence 12.9% 12.6% 7.6% 1.8% 2.2% 23% 15% 16% 25% 24% 77% 85% 84% 75% 76% FY08 FY10 FY12 FY14 FY15 India Finished Steel Consumption Growth (1) JSW Export Turnover as % of Total JSW Domestic Turnover as % of Total Penetrating further to capture growing domestic demand with unique marketing strategy unique nationwide retail network of more than 450 outlets of JSW Shoppe and JSW Explore Leadership position in India and largest exporter of steel products out of India Ability to re-align sales effort and shift between domestic and export market as per market conditions Exports to high demand regions such as Asia, Middle East, Europe and the US presence in over 100 countries Flexibility to shift between domestic and international markets based on market conditions (1) World Steel Association. India finished steel consumption data for calendar year (CY07 corresponds to FY08). 17

18 6 Strong sales and marketing platform Multi-sectoral volume growth Optimizing market mix and product mix to derive maximum benefit from sector growth Leveraging export presence New product approvals for Original Equipment Manufacturers (OEMs) and automotive customers Increase in value added products leading to incremental growth in focus sectors and also facilitating import substitution Focused on Retail Sales increased reach and penetration Segmented approach to address different retail segments Metro / Urban JSW explore Branded, multiple product service center for steel solutions Just-in-time solution with in-house profiling lines and Value Added Services Franchisee Model JSW Shoppe Steel distribution Enhanced customer experience Urban / Semiurban Semiurban / Rural JSW Shoppe Connect Smaller retail format linked to JSW explore/shoppe Last mile link to talukas/rural areas Sales to end consumers and MSMEs Increased customer focus and market penetration 18

19 7 Focus on operational efficiency Diverse blend of technology High labour productivity Integrated operations Coke Making: Recovery and Nonrecovery Coke Ovens Agglomeration: Pelletisation and Beneficiation Plants Iron Making: Blast Furnace, Corex, Sponge Iron (DRI) Steel Making: Basic Oxygen Furnace (BOF), Electric Arc Furnace (EAF), Conarc Casting: Continuous Casting, Thin Slab Casting, Billet Casting Improving labor productivity: Current production of ~1,096 tons/ employee (1) In-house training programs faculty internal Continuously investing, building and enhancing competencies Integrated manufacturing facilities: From pelletisation / beneficiation to downstream value-add capabilities Dedicated port and railway siding for logistics support 100% assured power supply through captive power plants and arrangements with JSW Energy and the power grid Resulting in operational efficiency Reduced raw material costs Focus on process improvements Waste gas utilization for power generation Efficient operations resulting in low conversion cost High level of integration and technological expertise leading to reduced production cost and time (1) Total production (12.17MT) divided by total no. of employees on Company payroll (11,099) in FY14 19

20 8 Strategic expansion aided by strong project execution Strong project execution capabilities. Experienced in-house project management team Supported by cross-functional team (commercial, finance and legal department) Established long-term relationship with key domestic and international suppliers Savings in procurement cost by negotiating firm prices for follow-on orders at low specific investment cost (1) Reduced specific investment cost/ton of capacity expansion shows cost efficiency 1.6 Mtpa FY 2003 USD 923/mt 2.5 Mtpa FY 2006 USD 682/mt 7.8 Mtpa 3.8 Mtpa FY 2009 USD 559/mt FY 2007 USD 550/mt 11 Mtpa FY 2012 USD 545/mt Vijayanagar Works: Major on-going Projects Capacity expansion from 10 MTPA to 12 MTPA by setting up certain new facilities and debottlenecking/ modification of existing facilities 50,000 TPA capacity Service Center to handle the products of Electrical Steel Complex Dolvi works: Capacity expansion from 3.3 MTPA to 10 MTPA to 5 MTPA by setting up certain new facilities and debottlenecking/ modification of existing facilities Salem Works: Capacity expansion from 1 MTPA to 1.2 MTPA by setting up certain new facilities and debottlenecking/ modification of existing facilities Setting-up of Reheating Furnace in Bar Rod Mill, Coke Oven and Turbo Generator Tarapur Works: Setting up 0.2MTPA Tin plate mill Focus on low cost and returns accretive brownfield projects to capitalise on expected demand recovery (1) Vijayanagar works expansions 20

21 9 Proven ability to acquire and turnaround assets JSW Steel has a proven track record of acquiring troubled assets and turning them around in record time by closely integrating them with its existing operations thus creating synergies and optimizing cost Case Study: Turnaround strategy at JSW Ispat s Dolvi plant December 2010 Completed Initiatives FY Road Ahead Plant under maintenance Loss making at EBITDA level High interest cost Financially distressed Infusion of equity Alignment of marketing strategies resulting in freight synergies and VAT benefits Reduction of high cost working capital funding Refinancing of existing debt Electricity sourcing from JSW Energy at competitive prices Commissioning of 4MTPA pellet plant (1), 1MTPA coke oven (1), waste gas based 55MW power plant, railway siding, and lime calcination plant Capacity expansion to 5MTPA Further operational improvements underway Inability to service existing debt Inadequate cashflows Corporate debt restructuring (CDR) case Exit from CDR Generating positive profit after tax Operational improvements underway Profitability to improve substantially Able to leverage an acquisition to maximum value accretion through application of knowledge and experience (1) Implemented in a wholly owned subsidiary Amba River Coke Limited. 21

22 10 Robust financial profile Strong track record of volume and revenue growth Superior profitability supported by efficient operations Well-capitalized balance sheet Financial flexibility to raise capital Strong positioning as compared to peers Achieved significant sales growth despite weak economic and sluggish domestic demand in past 2 years Resilient operations with improved EBITDA margin marked by several productivity and cost improvement measures Prudent financial ratios across liquidity, leverage and profitability parameters Adequate liquidity levels owing to prearranged funding in place for capacity expansions and a committed working capital facility Diverse sources of funding Strong relationships with over 50 banks/financial institutions with access to low cost credit Healthy mix of local and foreign currency debt Strong EBITDA margins, low leverage and higher returns on invested capital as compared to global peers 22

23 Strong positioning compared to peers EBITDA Margin (1) (%) 18.1% 19.6% 26.6% 25.2% 19.5% 17.8% 16.0% 12.0% 9.2% 9.1% 6.7% 5.9% 5.1% JSW Steel (Consolidated) JSW Steel (Standalone) Severstal CSN Magnitogorsk Iron and Steel Evraz Hyundai Steel Gerdau Tata Steel Arcelormittal Steel Dynamics US Steel ThyssenKrupp Net Debt/EBITDA (x) 3.8x 3.0x 0.7x 1.3x 1.5x 2.1x 2.2x 2.2x 2.7x 4.3x 4.6x 5.2x 5.5x JSW Steel JSW Steel (Consolidated) (Standalone) Severstal Magnitogorsk ThyssenKrupp US Steel Arcelormittal Evraz Gerdau Hyundai Steel Steel Iron and Steel Dynamics CSN Tata Steel Return on Average Capital Employed (2) (%) 9.7% 11.0% 17.8% 17.5% 11.9% 9.1% 7.5% 6.2% 5.8% 5.6% 5.6% 5.5% 5.4% JSW Steel (Consolidated) JSW Steel (Standalone) Severstal Evraz ThyssenKrupp Magnitogorsk Iron and Steel CSN Arcelormittal Gerdau Tata Steel Hyundai Steel Steel Dynamics US Steel Financials as of FY14 (FY ending December) for all peers except JSW Steel and Tata Steel (FY15 ending March) and ThyssenKrupp (FY14 ending September), (1) Calculated as EBITDA/ Revenue, where EBITDA is post adjustment of any one-off items, (2) Calculated as EBIT/ Average Capital Employed (net worth + long-term borrowings + shortterm borrowings + current maturity of long-term borrowings + net deferred tax liabilities) 23

24 Agenda Overview Value Proposition Recent Performance Business Environment 24

25 Key highlights 4QFY15 Standalone performance Gross Turnover: `11,893 crore/usd 1,900 mn Net Sales: `10,785 crore/usd 1,723 mn Operating EBITDA: `1,673 crore/usd 267 mn Crude Steel production: 3.06 million tonnes Saleable Steel sales: 3.06 million tonnes Net debt to equity: 1.02x and Net debt to EBITDA: 2.97x Consolidated performance Gross Turnover: `13,534 crore/usd 2,162 mn Net Sales: `12,364 crore/usd 1,975 mn Operating EBITDA: `1,683 crore/usd 269 mn Net debt to equity: 1.55x and Net debt to EBITDA: 3.81x Key update CAL-2 (0.95MTPA) at Cold Rolling Mill Complex 2 in Vijayanagar commissioned in Mar 2015 Electrical Steel Mill (0.2MTPA) at Vijayanagar commissioned in Apr 2015 USD/ ` = (RBI reference rate as on Mar 31, 2015) 25

26 Quarterly volumes standalone Crude Steel Production -3% -3% YoY QoQ Saleable Steel Sales -1% 1% YoY QoQ QFY14 4QFY15 3QFY15 4QFY14 4QFY15 3QFY15 4QFY14 4QFY15 3QFY15 Flat Long QFY14 4QFY15 3QFY15 Flat Long Semis All figures are in million tonnes 26

27 Full year volumes standalone Crude Steel Production 4% YoY Saleable Steel Sales 2% YoY FY14 FY15 FY14 FY15 FY14 FY15 Flat Long FY14 FY15 Flat Long Semis All figures are in million tonnes 27

28 Full year sales highlights consolidated 11.85^ 12.08^ 26% 26% 24% 33% 8.75* 8.92* 11% 14% 23% 25% 66% 61% 76% 67% FY14 FY15 OEM Retail Auto Exports FY14 Value added & special Products FY15 Other products Long products sales grew 9%YoY Sales to Auto sector grew 28%YoY Value-added & Special Products sales grew 38%YoY, Cold-rolled products sales surged 54%YoY and Coated products sales increased 20%YoY Source: JPC and JSW Steel, * Domestic sales in million tonnes ^ Total sales in million tonnes JSW Steel Standalone + JSW Steel Coated Products (net-off inter-company sales) 28

29 Full year retail sales highlights consolidated Retail sales ( 000 tonnes) 2,020 2,186 34% 35% 66% 65% FY14 FY15 FY14 Retail - Others Sales FY15 Retail - Branded Sales Retail Sales grew 8%YoY Long products sales increased 20%YoY, TMT sales grew 22% and WRC sales grew 17%YoY Cold-rolled products sales surged 45%YoY, Coated products sale grew 4%YoY 29

30 New product development/approvals in 4QFY15 Steel Type: SPRC35- IF/ EDD CRC End use: Exposed Panels of Passenger Cars Steel Type: IF Grade Galvaneal End use: Fuel Tank of two wheelers Steel Type: HR750- HRC End use: Commercial Vehicle Wheels Steel Type: Micro-Alloyed High Strength 38MnS5 End use: Crank Shaft of Commercial Vehicles Steel Type: D- Grade PPGI End use: Refrigerator Door Steel Type: SAE Alloy Steel Bar End use: Bearing Ring 30

31 Recognitions and accolades- FY15 Prime Minister Trophy for by the Ministry of Steel, India Zero Defect Supplies - by Toyota Kirloskar Motors Best Supplier Award - by TATA Motors State Export Excellence Award by the Government of Karnataka Star Performer by Haier Appliances Best Delivery Supplier - by FAG Schaeffler 31

32 4Q Financials standalone Particulars 4QFY15 4QFY14 ` Crores USD mn ` Crores USD mn Gross Turnover 11,893 1,900 13,330 2,130 Net Sales 10,785 1,723 12,255 1,958 Operating EBITDA 1, , Other Income Finance Cost Depreciation Exceptional Items (105) (17) - - Profit Before Tax , Tax Profit after Tax Diluted EPS (`)* 7.46* 32.84* *Not Annualized USD/ ` = (RBI reference rate as on Mar 31, 2015) 32

33 Full year financials standalone Particulars FY15 FY14 ` Crores USD mn ` Crores USD mn Gross Turnover 49,658 7,934 48,527 7,753 Net Sales 45,352 7,246 44,529 7,114 Operating EBITDA 8,872 1,417 8,783 1,403 Other Income Finance Cost 2, , Depreciation 2, , Exceptional Items (396) (63) (1,692) (270) Profit Before Tax 3, , Tax 1, Profit after Tax 2, , Diluted EPS (`) USD/ ` = (RBI reference rate as on Mar 31, 2015) 33

34 Operating EBITDA movement standalone $399 2,496 (28) ($4) ` crore/ USD mn $ (16) ($3) $267 1,673 (1,316) ($210) EBITDA 4QFY14 Volume NSR Cost Others EBITDA 4QFY15 USD/ ` = (RBI reference rate as on Mar 31, 2015) 34

35 Operational performance JSW Steel Coated Products Million tonnes Volumes 4QFY15 4QFY14 FY15 FY14 Production* Sales Key P&L data 4QFY15 4QFY14 FY15 FY14 Turnover 2,193 2,735 9,506 9,353 Operating EBITDA Profit after Tax (26) 35 (25) 51 ` crore *Including Job Work 35

36 Operational performance US Plate & Pipe Mill Production (net tonnes) 4QFY15 4QFY14 FY15 FY14 Plate Mill 72,482 1,10,407 3,61,525 3,91,281 Utilization (%) 30% 44% 36% 39% Pipe Mill 14,015 15,782 52,795 44,766 Utilization (%) 10% 11% 10% 8% Sales (net tonnes) 4QFY15 4QFY14 FY15 FY14 Plate Mill 63,960 94,680 3,09,373 3,42,335 Pipe Mill 13,380 15,672 57,351 53,141 USD mn Key P&L data 4QFY15 4QFY14 FY15 FY14 Turnover EBITDA + Other Income 0.13 (4.00) 6.24 (7.18) Profit after Tax (16.91) (18.69) (56.09) (64.53) Net tonnes = metric tonnes 36

37 Operational performance Chile Particulars 4QFY15 4QFY14 FY15 FY14 USD mn Production (Tonnes) 1,55,033 2,36,640 8,18,671 9,04,658 Sales (Tonnes) 1,50,536 1,49,443 9,21,206 7,53,841 Turnover Operating EBITDA (10.27) 1.32 (18.83) Profit after Tax (11.24) (0.25) (21.90)

38 4Q Financials consolidated Particulars 4QFY15 4QFY14 ` Crores USD mn ` Crores USD mn Gross Turnover 13,534 2,162 15,242 2,435 Net Sales 12,364 1,975 14,088 2,251 Operating EBITDA 1, , Other Income Finance Cost Depreciation Exceptional Items (26) (4) - - Profit Before Tax (81) (13) Tax (112) (18) Share of Associates and Minority Interest Profit after Tax Diluted EPS (`)* 2.23* 19.64* *Not Annualized USD/ ` = (RBI reference rate as on Mar 31, 2015) 38

39 Full year financials consolidated Particulars FY15 FY14 ` Crores USD mn ` Crores USD mn Gross Turnover 56,572 9,038 54,621 8,727 Net Sales 52,051 8,316 50,409 8,054 Operating EBITDA 9,402 1,502 9,165 1,464 Other Income Finance Cost 3, , Depreciation 3, , Exceptional Items (47) (8) (1,713) (274) Profit Before Tax 2, , Tax Share of Associates and Minority Interest Profit after Tax 1, Diluted EPS (`) USD/ ` = (RBI reference rate as on Mar 31, 2015) 39

40 $6,321 39,563 Net debt movement consolidated $459 2,875 ` crore/ USD mn (3,318) ($530) (1,562) (190) ($250) ($30) (1,563) ($250) $5,720 35,805 Net Debt* as on Dec'14 New Loan Taken Repayments Pre-payments Fx Impact Movement in FD / MF Net Debt* as on Mar'15 Particulars Cash & cash equivalent (` crore) Net Debt/Equity (x) Net Debt/EBITDA (x) *Net Debt excludes Acceptances USD/ ` = (RBI reference rate as on Mar 31, 2015) 40

41 Agenda Overview Value Proposition Recent Performance Business Environment 41

42 -0.1% 3.4% 3.5% 1.8% 2.4% 2.4% 3.1% 0.9% 1.5% 1.0% 4.6% 4.3% 7.2% 7.5% 7.4% 6.8% Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 PMI Global economy IMF maintains 2015 global GDP growth projection at 3.5% US continues to grow consumer sentiment, labour markets and recent housing print remain encouraging Europe shows signs of improvement, supported by large monetary stimulus and lower oil prices Japan benefits from rising external trade, overall growth remains muted due to subdued private consumption Chinese economic growth is moderating as previous excesses in property, credit and investment continue to unwind US Eurozone Japan China GDP growth actual vs. projections for P Volatility in energy prices, currency adjustments, and swings in capital flows can potentially impact different countries in varying degrees Global economic growth indicators are moderately positive Source: Bloomberg, IMF and JSW Steel World AMEs US Euro Area Japan EMEs India China 42

43 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 HRC prices ($/tonne) Apr-09 Oct-09 Apr-10 Oct-10 Apr-11 Oct-11 Apr-12 Oct-12 Apr-13 Oct-13 Apr-14 Oct-14 Apr-15 Global steel scenario Steel demand growth outlook (%YoY) F World EU US MENA India China Chinese monthly steel exports (mn tonnes, annualized) North America ExW Black Sea export FOB Europe ExW China export FOB World Crude Steel production in 1QCY2015 fell by 1.8%, World Steel Association forecast marginal demand growth of 0.5% in CY2015 Rising steel exports from China result in supply glut Regional HRC prices remain under pressure driven by lower demand and lower iron ore and coal prices, and currency fluctuation Rising steel exports from China an area of concern Source: World Steel Association, Bloomberg and JSW Steel 43

44 Indian economy and steel industry 8.0% % 76.4 FY14 FY15 Domestic steel industry faced headwinds of a 71%YoY surge in finished steel imports (especially from China, Korea, Japan and Russia) in FY15, when apparent consumption increased only 3.1%YoY. Finished steel exports in FY15 decreased by 8.1%YoY Crude Steel Production Apparent Finished Steel Consumption* Domestic iron ore availability is expected to improve with restart of closed mines 232% Total Steel Imports 46% 18% 55% 48% Overall activity levels show mixed signs, inflation remains modest and there are initial signs of pick up in capital goods and medium & heavy commercial vehicle segment actual uptick in investment cycle is yet to be seen Tighter liquidity conditions, slowing rural demand due to recent unseasonal rains, leveraged corporate balance sheets and below-normal monsoon forecast are key risks China Japan Korea Russia Rest of the FY14 FY15 World Investment cycle expected to pick up in 2HFY16, rising steel imports a concern Source: JPC and JSW Steel All figures are in million tonnes, * Net of double counting effect 44

45 Forward looking and cautionary statement Certain statements in this report concerning our future growth prospects are forward looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward looking statements. The risk and uncertainties relating to these statements include, but are not limited to risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition within Steel industry including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, our ability to commission mines within contemplated time and costs, our ability to raise the finance within time and cost client concentration, restrictions on immigration, our ability to manage our internal operations, reduced demand for steel, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which the Company has made strategic investments, withdrawal of fiscal/governmental incentives, impact of regulatory measures, political instability, legal restrictions on raising capital or acquiring companies outside India, unauthorized use of our intellectual property and general economic conditions affecting our industry. The company does not undertake to update any forward looking statements that may be made from time to time by or on behalf of the company. 45

46 Thank you 46